A Boeing 737-800 operated by Batik Air, the full-service arm of one of Asia's biggest airline operators Lion Air Group, was attempting to take off from Halim Perdanakusuma airport when its wing clipped the tail of a smaller plane being towed off the runway.
"All passengers and crew were safely evacuated," the transportation ministry said in a statement, adding the airport, which services mainly domestic flights, would be closed until further notice.
TV images showed the wing of the Batik Air aircraft in flames as fire trucks and ambulances gathered on the runway.
Indonesia has seen a boom in air travel and budget carriers have proliferated at among the fastest paces in the region.
But airport infrastructure in Southeast Asia's biggest economy has struggled to keep pace. Indonesia has experienced two major air crashes since late 2014, when an Air Asia plane carrying 162 passengers crashed into the Java Sea.
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